What are the new rules for Tier 1 UK Investor Visa?

The Tier 1 UK Investor Visa will replace the Entrepreneur Visa from 29 March 2019. The funds required for investment for the new pathway has been set much lower at 50,000 Pounds. Nevertheless, there might be more ambiguities while filing the application. Innovation must be demonstrated in the proposed new business in the UK.

The rules for the Tier 1 UK Investor Visa have been modified to a greater extent to become effective from 29 March. The crucial change affects the duration of time that the investor must have held the funds before investing in the UK.

The existing rules mandate that the funds must have been held by the applicant for 90 days before filing the application. The new rules extend this period to 2 years now, as quoted by the Guardian.

Moreover, the requirement for opening a bank account in the UK before making the application has been tightened. This is made explicitly clear in the statement of changes. Banks will have to mandatorily perform required inquiries and diligence checks. They must also confirm that these have been conducted prior to the UK Investor Visa being progressed.

The applicants will also not be able to purchase national debt in the UK to qualify as an investor. The buying of bonds of the UK government is being eliminated as a qualifying investment.

The changed rules for UK Investor Visa are inclusive of stringent curbs on routing funds through intermediaries. This specifies that the intermediaries who involve in the investment of funds must be accredited by the Financial Conduct Authority.

The definition of trading and active firms has also been revised and made more stringent. The new definition for these firms is as follows:

Must be registered with the Companies House UK

Must be registered with the HMRC for PAYE and Corporation tax

Must have a business bank account and accounts in the UK and both must demonstrate regular trading of services and goods

Must have a minimum of 2 staff based in the UK who are not Directors of the firm